BONUS TO FARMERS

Gisborne Times, Volume LXXIII, Issue 11833, 14 January 1933, Page 5

BONUS TO FARMERS

PROPOSED RELIEF IN AMERICA

ACREAGE OR PRODUCTION MUST RE REDUCEI).

CONTRO METIS TA L I*l' U -

fTT.P.A. by Elec.’Tel. Copyright.) ; (Rcc. .Tan/ 13; 7, p.m.') WASHINGTON; .lan. 12. As the first move in agriculGiro relief legislation propounded by. Mr. RooscvoH ' during Ids Presidential campaign, the House of Represent a lives to-day passed the so-called "Rarity plan’’ Farm RelieJ Bill, by 20>> votes to lot).

The. plan, in effect, provides H"' the payment oi bonuses fo Ihe producers of seven commodities, representing the difference. between the present world price and Die average prices prevailing before 191-1. The commodities are wheat, hogs, cotton-, tobacco, vice,, peanuts and butterfat. The bonus will ho paid by millers, mea t packers, etc. , to the Uni led States Treasury, wliieh in. turn will refund it to the farmers upon fulfilment of a pledge to reduce the acreage of production by 25 per cent. The final passage of the Bill is doubtful, as opposition in the Senate is strong, while the Presidential veto, if the. Bill is passed, is considered probable. Whether Mr. Roosevelt favors the legislation if passed is unknown. It was drafted generally, but not specifically, as he. outlined the' plan. -Opponents of Ihe Bill are vigorous in their denouncements, alleging that it' would cost the consuming public approximately one billion dollars annuplly as the administrative expense the farmers must hear would he excessive owing to the. necessity of strict supervision to enforce the reduction clause.

Many predict that the Supreme Court will declare the measure uneon stifutlonal. If enacted it would peg the price of wheat, at 75. cents a bushel, cotton nine cents, a pound, nud hogs five cents a pound.